4 Trade Ideas for the Bank of New York Mellon: Bonus Idea

• Posted by Greg Harmon
• on November 25th, 2024

Here is your Bonus Idea with links to the full Top Ten:

The Bank of New York Mellon, $BK, comes into the week at resistance at an all-time high. It has Bollinger Bands® opening higher to allow a move. The RSI is rising in the bullish zone after a reset lower while the MACD is positive and looking to cross up. There is no resistance above 80.30. Support lower is at 78.75 and 77 before a gap to fill to 76.20 then 75. Short interest is low at 1.1%. The stock pays a dividend with an annual yield of 2.35% and has traded ex-dividend since October 21st.

The company is expected to report earnings next on January 15, 2025. The December options chain shows the biggest open interest at the 70 then 50 strikes on the put side. On the call side it builds from 60 to a peak at 77.50 then tails off quickly. The January chain has biggest open interest at the 70 strike then 57.50 and 75 on the put side. The call side sees it biggest at 75 then 80. Finally, the March chain has biggest open interest at the 80 put and on the call side at 55 then 77.50.

The Bank of New York Mellon, Ticker: $BK

Trade Idea 1: Buy the stock on a move over 80.30 with a stop at 77.

Trade Idea 2: Buy the stock on a move over 80.30 and add a December 80/75 Put Spread ($1.35) while selling the January 85 Call ($1.10).

Trade Idea 3: Buy the December/January 85 Call Calendar ($1.00) while selling the January 75 Put (85 cents).

Trade Idea 4: Buy the January 75/82.50/87.50 Call Spread Risk Reversal (15 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the Thanksgiving shortened holiday week, saw equity markets showing strength, recovering much or all of last week’s falls.

Elsewhere look for Gold to continue its uptrend while Crude Oil consolidates at the bottom of a broad range. The US Dollar Index continues to drift to the upside while US Treasuries hold in consolidation. The Shanghai Composite looks to continue the short term move higher while Emerging Markets cling to support in the short term uptrend.

The Volatility Index looks to remain low and stable making the path easier for equity markets to the upside. Their charts look strong, especially the SPY and QQQ on the longer timeframe. On the shorter timeframe both the QQQ and SPY are working back higher but it is the IWM taking the lead with strength. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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